Did you know - the average wedding in India costs over 3 times the annual household income. Its $130 billion valuation makes the Indian wedding industry one of the largest globally. With jewellery, apparel, destination weddings being important aspects of Indian weddings, their corresponding industries are naturally likely to benefit from the same.
- 34% of India’s population falls within the marriageable age range(20-39 years).
- India’s wedding industry is nearly twice the size of the U.S. wedding market.
- Matrimonial platforms account for ~6% of all the marriages in India.
- As per Confederation of All India Traders(CAIT), India sees 80-100 lakh weddings every year.
Weddings in India: What do expenses look like?
Let’s understand how the expenses for an Indian wedding can look like with the help of an example. Suppose an Indian family has an annual income of ₹8 lakhs, then they are likely to spend roughly ₹24 lakhs as wedding expenses. That’s a whopping 3x of the annual household income of the family.
Talking about weddings in urban India and the split of wedding expenses between the bride and groom - a 59% equal split was seen, 32% from the bride’s family and only 9% from the groom’s family respectively.
| Contributor | Percentage (%) |
| Equal Split | 59% |
| Bride's Family | 32% |
| Groom's Family | 9% |
Source: WedMeGood: Annual Wedding Industry Report 2023-2024
Which stocks in India are a significant part of weddings in India?
Indian weddings are a multi-billion-dollar industry, impacting diverse sectors across hospitality, apparel, jewellery, and discretionary goods. As a result, the share prices of these companies also end up seeing an uptick, especially during the wedding season:
Destination Weddings: Transforming Exotic Locations into Profit Hubs
- Indian Hotels - The Tata-owned hospitality chain owns luxury properties like Taj Mahal Palace and Umaid Bhawan, a favorite for destination weddings. These destinations see a boost in occupancy rates and revenue during wedding seasons.
- ITC Hotels: Soon to be listed on the stock markets, ITC Hotels are the second largest hotel chain in India with brands like WelcomHotels and Fortune Hotels under its portfolio.
- Lemon Tree: India's largest hotel chain in the mid-priced hotel sector, Lemon Tree Hotels Ltd provides hospitality services such as accommodation, food and beverages, and other hotel services.
- Indigo - During the wedding season, India’s largest airline sees an increase in traffic and ticket sales from the flights being booked for wedding guests.
Matchmaking Platforms: Digital Cupids in a Billion-Dollar Industry
- Companies like Matrimony that own Bharat Matrimony and Shaadi.com connect millions for arranged marriages. These platforms see a surge in subscriptions ahead of wedding seasons.
The Apparel Industry: Dressing Up India’s Big Fat Weddings
- Vedant Fashion - Owner of the Manyavar and Mohey brands, Vedant Fashion is synonymous with wedding fashion. Dominating the ethnic wear market, especially bridal and groom wear, Indian weddings account for a significant share of their sales.
- ABFRL - Aditya Birla Fashion and Retail Ltd. owns brands like Sabyasachi and Pantaloons, catering to premium and mass-market wedding apparel. Their strong portfolio of ethnic and bridal brands ensures steady sales during weddings.
Jewellery: The Timeless Sparkle of Indian Weddings
- Titan - Market leader in jewellery, watches, and accessories - weddings account for a significant portion of Titan's jewellery sales. Their bridal collections and gold demand see significant spikes in wedding months.
- Kalyan - Focused on South India, Kalyan is a major player in the wedding jewellery segment. Bridal jewellery remains a core revenue driver for Kalyan.
Wedding Loans: Financing India’s Grand Celebrations
- Leading banks in India like ICICI, SBI and HDFC offer wedding loans to meet high financial demands. Additionally, weddings are known to account for a growing share of personal loans. Custom wedding loan products help banks tap on to this demand.
Non-essential Luxury Spends: How Weddings Drive the High-End Market
- Asian Paints - Leaders for decorative paints in India, the demand of Asian Paints spikes during weddings for home renovation, paints and finishes.
- VIP Industries - A leading luggage manufacturer in India, VIP is a crucial part of the pre-wedding shopping and honeymoon travel. Seasonal revenue gains from wedding-driven purchases positively impact the share price for VIP Industries.
- Voltas- Renowned for its energy-efficient air conditioners, Voltas is a go-to choice for wedding gifting with a wide range of refrigeration products, such as deep freezers, water coolers and chillers.
Where does the wedding industry stand against the Indian Retail Market?
As of FY 2024, the Indian wedding industry is the second largest in the Indian Retail Market, with its market size of over ₹11 Trillion, leaving categories like apparel, jewellery, consumer durables and mobiles behind.
| Indian Retail Market (INR) in FY24 | |
| Category | Market Size (INR) |
| Food & Grocery | ₹56,52,300 crores |
| Weddings | ~ ₹10,79,000 crores |
| Apparel & Accessories | ₹6,97,200 crores |
| Jewellery | ₹6,47,400 crores |
| Consumer Durables | ₹3,23,700 crores |
| Mobiles | ₹2,65,600 crores |
Source: DRHP’s
India’s jewellery market is also seeing significant Y-o-Y growth in its market size. The industry that stood at a market size of $26 billion in FY12 is expected to grow to $124 billion by FY27.
| Indian jewellery market size (INR) | |
| Financial Year | Market Size (INR) |
| FY12 | ₹2,15,800 crores |
| FY21 | ₹3,56,900 crores |
| FY23 | ₹5,81,000 crores |
| FY27E | ₹10,29,200 crores |
Source: Technopak analysis (assuming an exchange rate of 1 USD = ₹83)
A similar trend is also being seen in the apparel industry. The apparel industry that had a market share of close to $9 billion in FY15 is expected to surge to $17 billion by the end of FY’25.
| Indian wedding & celebration wear market (INR) | |
| Financial Year | Market Size (INR) |
| FY15 | ~ ₹74,700 crore |
| FY20 | ~ ₹1,07,900 crore |
| FY25E | ~ ₹1,41,100 crore |
Source: Vedant Fashions - DRHP
Conclusion
India’s ₹10,79,000 crore wedding industry offers a wealth of opportunities for investors across diverse sectors like hospitality, jewellery, apparel, and financial services. While these industries offer promising growth, investors should also weigh external factors like gold prices, travel trends, and consumer spending behavior.
For investors investing in stocks benefitting from the wedding season in India or any other Indian stocks, it’s essential to take a balanced approach. As always, conducting in-depth research can help make more informed and confident investment choices.
Source:
Screener, Goldman Sachs - The Rise of Affluent India, Jefferies
Disclaimer
This blog is for general/educational information purposes and is no way to be considered as advice, or recommendation for investment or otherwise. Investment in securities market are subject to market risk, read all the documents carefully before investing. The securities quoted are exemplary and not to be considered as any kind of advice or recommendation. The past performance of the stocks are not necessarily indicative of future performance. INDmoney Private Limited 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500.